As a sales recruitment agency, we know compensation is an important consideration for sales professionals. It is often valued higher by sales professionals for a number of reasons. People in this industry are driven more by money and there are many ways that you could be compensated for your time. So, as a sales organization, you need to put careful thought into your compensation plans. 

If you tend to underpay your people or have a poor compensation plan, you’ll not only have trouble attracting top talent, but you’ll also have issues motivating your salespeople to maximize their sales success. Getting your compensation plan right is essential. Below, our sales recruiters talk about the most common sales plans and the best approach to pay salespeople if you want to get the most sales success. 

Most common compensation plans for sales professionals

There are many ways you can pay your sales team. Some common methods to pay salespeople include:

1. Commission-based: Salespeople are paid a percentage of the sales they generate. This motivates them to close more deals and increase their earnings.
2. Base salary + commission: Sales reps are given a base salary plus commission on sales. This provides a stable income and motivation to close deals.
3. Salary + bonus: Employees are paid a salary and a bonus based on meeting or exceeding specific sales targets. This incentivizes salespeople to work hard towards specific goals.
4. Territory volume: Salespeople are paid based on the sales volume they generate in their assigned territory. This motivates them to increase sales in their territory.
5. Spiff or incentive programs: Reps are offered bonuses or other incentives for meeting specific targets or for selling specific products. This can increase motivation for salespeople.

How to pay salespeople to maximize sales success

There is no one-size-fits-all answer to this question.  The best way to pay salespeople varies depending on the company, its goals, and the sales team’s responsibilities. The key is to find the method that works best for the company and the sales team and to communicate it clearly to the salespeople.

For one organization this could mean a commission-based structure, but for others, it could mean a salary and annual bonus. Before establishing a commission plan, do your research. Talk to sales recruiters, speak with industry professionals and get an understanding of what other similar companies offer, especially your competitors. This will help you choose a compensation strategy that will motivate your sales team to maximize sales. 

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SalesForce Search is a sales recruitment agency that specializes in hiring sales rockstars. Hiring top salespeople is tough. Only 55% meet their quota. Our proactive approach recruits talented salespeople before they hit the market. As North America’s leading sales headhunter we recruit salespeople in every sector of the economy including, software, manufacturing, financial services and medical devices. To find your next sales rockstar, start your search here.